Are there any age limits on contributing to a traditional IRA?
There are no longer any age limits on making contributions to traditional IRAs. The cap of age 70½ expired after…
What is the age I have to start taking money from my IRA?
There are no required minimum distributions for 2020 (the requirement for 2020 was waived by the CARES Act), so the…
I am 67 years old and took a distribution from my 401(k) account to pay closing costs for my new home. Am I taxed on this distribution?
The distribution is included in gross income; there is no exclusion in the law for using retirement account funds for…
I sold my vacation home after it was up for sale for over a year. Can I add utility costs and property taxes paid during the time it wasn’t being used by me to the cost basis of the home?
The cost basis of a home includes only capital improvements. Ordinary expenses, such as utility costs and property taxes, do…
Retirement Plan Limits for 2021
Due to low inflation, cost-of-living adjustments to various retirement plan limits are unchanged or only slightly higher (Notice 2020-79). The…
Gambling Losses
While most miscellaneous itemized deductions cannot be taken in 2018 through 2025, those that are not subject to the 2%…
Social Security Changes for 2021
More than 70 million Social Security beneficiaries will receive a cost-of-living adjustment (COLA) of 1.3% starting with the December 2020…
Excepted Benefit HRAs for 2021
Employers may offer employees a reimbursement plan to pay for certain costs not covered by group health insurance. An Excepted…
ABLE Account Rules Clarified
Achieving a Better Life Experience (ABLE) Accounts was added to the law in 2014 to enable tax-free savings accounts to…
Barcodes Added to Taxpayer Notices
The IRS is including barcodes to CP14 and CP14 IA notices sent to taxpayers who have unpaid taxes (IR-2020-233). These…